Children's savings: Junior ISAs, accounts and Premium Bonds

Last checked: 14 October 2026. We check this guide regularly against official sources.

Budget watch. The Autumn Budget is on 28 October 2026. Junior ISA allowances and related tax rules can change. Re-check GOV.UK the day after the Budget before treating a figure below as current.

Saving for a child is different from saving for yourself. The money may be in the child’s name, the tax rules can differ, and some accounts lock until 18. This guide covers the main cash options: cash Junior ISAs, children’s savings accounts, and Premium Bonds for under-16s.

ClearRates compares cash savings. We do not recommend investments. For the household side of a new baby, see Saving for a new baby. This page is the product and rules guide.

Cash Junior ISA

A Junior ISA is a long-term, tax-free account for a child. In the 2026 to 2027 tax year, GOV.UK sets the limit at £9,000. That is the combined total of cash and stocks and shares Junior ISAs, not £9,000 of each.

The child must be under 18 and living in the UK, with a limited exception for dependants of Crown servants abroad. A child cannot hold a Junior ISA and a Child Trust Fund at the same time. A provider can transfer a Child Trust Fund into a Junior ISA.

A cash Junior ISA pays tax-free interest. That is what ClearRates can compare. A stocks and shares Junior ISA invests the money. Investing is outside what ClearRates covers.

A child can have one of each type. Anyone can pay in, up to the annual limit from everyone combined. Listed cash Junior ISAs are on Junior ISA.

£9,000

Who owns the money

Parents or guardians with parental responsibility open and manage the account. The money belongs to the child. GOV.UK says the child can take control from age 16, and cannot withdraw until 18 except in limited cases. At 18 it becomes an adult ISA.

That lock-in is the trade-off against an ordinary children’s account: tax-free interest, and no access for school costs before 18.

Children’s savings accounts

Banks and building societies offer children’s savings accounts, often easy access or regular savers in the child’s name. They usually have no Junior ISA-style lock until 18. Check the terms. A parent or guardian usually has to sign while the child is young. See children’s savings.

Some families use an adult account held on trust for the child. The legal and tax setup can differ, so read the provider’s terms.

The £100 parent rule

Interest on a child’s savings is usually tax-free. The exception on GOV.UK: if money given by a parent earns the child more than £100 of interest in a tax year, that interest is taxed as the parent’s, above the parent’s own Personal Savings Allowance.

The rule does not apply to money from grandparents, other relatives or friends. It does not apply to a Junior ISA or a Child Trust Fund.

Premium Bonds for a child

NS&I Premium Bonds can be bought for a child under 16. The minimum is £25 and the maximum holding is £50,000 per person. Prizes are tax-free. The prize fund rate is an average, and most people win less than that headline. It is not a guaranteed AER. A nominated parent or guardian looks after the Bonds until 16. Full detail is in Premium Bonds.

Child Benefit, in outline

You can claim Child Benefit after registering the birth, and the claim can be backdated up to three months. From the 2024 to 2025 tax year, if either partner’s adjusted net income is over £60,000, 1% of Child Benefit is repaid for every £200 above that. Above £80,000, it is all repaid. Savings interest counts toward that income test. Some people claim and opt out of the payments so they keep National Insurance credits while a child is under 12.

This is not advice on whether to claim or opt out. See Child Benefit and the High Income Child Benefit Charge.

Who holds the money

Children’s accounts and cash Junior ISAs with UK-authorised banks and building societies are normally covered by the FSCS up to £120,000 per eligible person, per authorised firm (since 1 December 2025). Brands that share one banking licence share that limit. Check the legal name of the firm. It may differ from the brand.

For NS&I, including Premium Bonds: Backed by HM Treasury — 100%, no limit. See FSCS at a glance and FSCS protection.

How ClearRates uses this

When a children’s account or cash Junior ISA is listed, the card shows the deposit-taker’s legal name and the protection scheme. Premium Bonds’ prize fund rate is not treated as an AER. Stocks and shares Junior ISAs are not recommended here.

Sources

Accessed 14 Oct 2026.

• GOV.UK, Junior ISAs
• GOV.UK, Interest on savings for children
• GOV.UK, Child Benefit
• GOV.UK, High Income Child Benefit Charge
• NS&I, Premium Bonds
• FSCS, deposit protection limit

Questions

How much can go into a Junior ISA in 2026/27?

Up to £9,000 from everyone combined, across cash and stocks and shares. Re-check GOV.UK after the 28 October 2026 Budget.

Can I take money out of a Junior ISA for school or childcare?

Usually no until 18, except in limited cases. Children's savings accounts are typically more flexible. Check the terms.

Do grandparents' gifts count toward the £100 parent rule?

No. GOV.UK says the £100 limit applies to money from a parent, and it does not apply to a Junior ISA or a Child Trust Fund.

Are children's savings protected by the FSCS?

Children's accounts and cash Junior ISAs with a UK-authorised bank or building society are normally covered up to £120,000 per person, per authorised firm. For NS&I, including Premium Bonds: Backed by HM Treasury — 100%, no limit.

Should I open a Junior ISA or a children's savings account?

It depends on access before 18, who is giving the money, and whether you want the Junior ISA wrapper. ClearRates compares cash products when they are listed. This is not personal advice.